Stavropol holding Baisad is the only large enterprise in the North Caucasus Federal District engaged in deep
potato processing. Since 2014, there have been lines for the production of French fries and potato flakes. Monthly factory
produces about 1,5 thousand tons of french fries and 500 tons of potato flakes. Vladimir Miroshnikov, head of the company's sales department, tells how the potato processing business of Baysad CJSC has developed and what tasks the company sets for the future.
- Vladimir, as far as I understand, it is very difficult for a company that is not a part of specialized global concerns to implement such a project from scratch. We need technology, equipment, specialists…
– It was indeed a difficult task to launch a potato processing unit, but let's not forget that Baysad CJSC is a large diversified holding specializing in the production of food products. It is one of the leaders in the markets for pasta and oil and fat products in the Southern Federal District and the North Caucasus Federal District. In addition, the company produces tomato paste, sauces, flour, sausages; has its own poultry farm and poultry plant.
The management team had extensive experience in opening production lines from scratch, so they gradually managed to cope with all the problems. In addition, Baysad potato products appeared on the market at the moment when sanctions against Russia were introduced, and the period of import substitution began.
“But there was no ban on the import of frozen french fries.
– On the other hand, people began to treat Russian brands much more loyally. Baysad offered products of decent quality, but noticeably cheaper than European ones, and chain stores and HoReCa enterprises took it very well.
– In 2014, few people grew varieties for processing into fries. Especially in the area of Kislovodsk (where the Baisad plant is located). How did you solve the problem with raw materials?
- At the very start, we worked with varieties close in dry matter content to technical ones. We bought raw materials from farmers all over the country, without contracts. And this process was associated with a large number of risks. At the same time, the holding had a significant fund of land on which cereals were grown. Already in the second year of the division's activity, the question arose of the need to organize its own production of raw materials. In 2016, the enterprise purchased seeds and received the first trial volumes of potatoes. It took time to identify a few varieties that show the best results in our conditions, but now the company is fully working on its own potatoes.
Was it easier to organize the production of potato flakes?
- It was definitely easier with raw materials. Initially, it was assumed that “for flakes” we would send those potatoes that do not meet the requirements for fries (tubers with mechanical damage, of a smaller caliber).
Varieties with a high content of dry matter provided a high yield of products, it is much more profitable to work with them than with table varieties. And in general, production was organized as rationally as possible, without waste.
The enterprise encountered difficulties at the stage of selling the final product: the cereal market was not entirely clear at first. About a year formed a circle of buyers. Now we are working with the main suppliers of food ingredients for large Russian enterprises. Plus, they launched their own small line of instant mashed potatoes in glasses.
– Do you sell flakes only in Russia?
– In Russia and neighboring countries (we deliver to Armenia, Azerbaijan, DPR, LPR). There are also requests from far abroad countries, but so far the production volumes are not very large and do not allow entering new markets.
- Let's continue the topic of selling french fries. Does Baysad not work with large fast food chains?
- Not now. Although the possibilities of cooperation with some representatives of well-known brands were discussed.
Deliveries for large restaurant chains (taking into account the required volumes and frequency) are still a separate business segment. But it cannot be ruled out that in time we will return to this issue.
- Has the demand for "potato" products changed since the beginning of the pandemic?
– We noted a decline in French fries sales in the spring of 2020, when cafes and restaurants were completely closed. Many owners of public catering enterprises then refused to rent warehouses and did not buy food for future use. But gradually the situation improved, the segment
fast food began to feel more confident.
At the same time, we did not stop working with retail chains for a single day: we supplied our products to stores, made private labels (for Metro, for example). In this direction, sales volumes are only growing.
According to our observations, the pandemic did not affect cereal sales at all. This product is used mainly in the baking, meat processing industries, and bread and sausage do not lose their relevance in any circumstances.
But since the beginning of autumn 2021, the demand for potato flakes has grown significantly. There are a lot of applications from buyers now, but we attribute this surge not to the pandemic, but to the shortage of potatoes on the market (and, as a result, the rise in prices for it).
- Do you feel the shortage of raw materials this autumn?
- In the Stavropol Territory, the season for potato growers has developed quite successfully. At least from our fields near Novopavlovsk (Kirov district) we have harvested a good harvest, in accordance with the planned indicators. But our potatoes are fully grown
on the watering.
- Will Baysad increase the output of "potato" products?
- Next year, the plant plans to expand the production of french fries, the second line is almost ready to be launched. Accordingly, we will increase the area of cultivation of raw materials. It is possible that against this background, the volume of output of potato flakes will also increase.
There will be more "potato" products under the Baisad brand, and we are sure that the consumer will only benefit from this.